Which of the following economic perspectives for decision making is a statement that describes the world as it is?
a. Positive statement
b. Normative statement
c. Cognitive statement
d. Reflective statement
a. Positive statement
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The marginal revenue of a monopolist is
A. less than price because a monopolist is a price taker. B. less than price because to sell more output the firm must reduce the price on all units sold. C. above price because the firm is a price setter. D. always equal to price.
Mexico has a comparative advantage in producing corn
A. if its opportunity cost of producing corn is lower than the opportunity cost in other countries. B. if its opportunity cost of producing corn is the same as the opportunity cost in other countries. C. regardless of the opportunity cost in other countries. D. if its opportunity cost of producing corn is higher than the opportunity cost in other countries.
If inventory stocks are ________ and firms have enough capital and labor to support an output increase, monetary and fiscal policy will be ________.
A. low; very effective B. low; ineffective C. zero; useless D. high; very effective
Classical economists believed that
A) real GDP per person would rise above its subsistence level in the long run. B) real GDP per person would never rise above its subsistence level in the long run. C) the demand for labor increases when the population increases. D) population growth decreases as real GDP per person rises.